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Memory makers start to suffer from Intel chip drought

February will be flat as a pancake

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The first repercussions of a shortage of Pentium III processors has already begun to make its mark in memory markets.

One major UK memory supplier said that is already seeing a knock on effect of the chip shortage on prices.

He said: "Demand is already fairly flat, and I don't think Chinese New Year is going to do anything to firm up the 8 x 8 price. Some are already voicing opinions of a $4 8 x 8 before the end of February."

Although some system builders and dealers are switching to Athlons, which are readily available, AMD itself only considers that it has a 20 per cent share of the desktop market, which is the area most affected by the Intel shortages.

Meanwhile a source at a large Korean dealer claimed that the country has not seen even hide-nor-hair of Coppermines.

He said: "Prices on P3 500, 550, and 600's have gone up about 14 per cent in the last three weeks. The vendors claim they will continue to go up. No reason is given.

"Coppermines basically do not exist in the South Korean channel, so that may be part of it. P3 600 and below may be drying up. but AMD Athlons are dropping in price almost daily. In fact, we plan to change our lead systems to Athlon as soon as we nail all the details down." ®

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